Share Price

Gold Fields is a significant unhedged producer of gold with attributable annualised production of approximately 2.0 million gold equivalent ounces from six operating mines in Australia, Ghana, Peru and South Africa. Gold Fields also has an extensive and diverse global growth pipeline with four major projects at resource development or feasibility level. Gold Fields has total managed gold-equivalent Mineral Reserves of 64 million ounces and Mineral Resources of 155 million ounces. Gold Fields is listed on the JSE Limited (primary listing), the New York Stock Exchange (NYSE), NASDAQ Dubai Limited, Euronext in Brussels (NYX) and the Swiss Exchange (SWX). In February 2013, Gold Fields unbundled its KDC and Beatrix mines in South Africa into an independent and separately listed company, Sibanye Gold

Mine/region reviews: The Executive Committee of each operation and region conducts a risk review of the top risks and mitigating strategies on a quarterly basis

Presentation to Exco: The Mine Manager presents the top 10 risks and mitigation actions to members of the Exco during quarterly business reviews. The impacts of relevant mitigating actions are assessed in terms of their relevance and effectiveness

Compilation of Group Risk Register: The Group Risk Manager extracts all of the top risks from the regional and operational registers in line with the tolerance levels set by the Board, and compiles the Group Risk Register

Assessment and moderation: The risks are then assessed and moderated in a Group context by the relevant risk owners and Exco members

Exco Risk Meeting: A top risk register review is conducted and Group-wide mitigation strategies are set and monitored during the Exco Risk Meeting

Audit Committee review: A review of the top risks and mitigation strategies is conducted by the Audit Committee twice a year

Internal Audit review: An audit of mitigation strategies is carried out by Internal Audit

Risk appetite and tolerance

Figure below indicates whether management are operating within the risk tolerance levels set for them by the Board. Tolerance
levels are reviewed and reset every year as part of our annual risk management plan.

Risk performance (pre-unbundling)

Risk area

Risk appetite

Tolerance level

Targets

C2009

C2010

C2011

C2012

x\√

OPTIMISING OUR OPERATIONS

Safety

Zero Harm

Zero Harm

FIFR2 – Zero

0.16

0.11

0.12

0.11

SIFR3 – 25% less

2.29

2.22

2.64

2.40

LTIFR4 – 25% less

3.91

4.39

4.69

5.161

DLIFR5 – 25% less

180

198

208

227

Health

Zero Harm

Zero Harm

Less than 5%
0,1 mg/m3

4.3%

3.2%

1.2%

4.7%

All Machinery
< (110 dB(A))

5.9%

3.0%

0.9%

0.8%

Environment

Zero Harm

Zero – level 4
and 5 incidents

Zero

Zero

Zero

Zero

Zero

Gold delivery

5Moz/2015

Short-term NCE 20%

Long-term NCE 25%

95% compliance

NCE6 20%

3.58

20%

3.50

16%

3.49

25%

3.25

17%

GROWING GOLD FIELDS

Capital
Projects

Project delivered on

time/budget as per

current schedule

7 – 10% overrun

South Deep

Chucapaca

Far Southeast

Arctic Platinum

Mergers and
Acquisitions

Proper assessment of
risk returns
commensurate with
the risk

IRR 5% – Near-mine
IRR 10% Greenfields

As per IRR7

On track

On track

On track

On track

Exploration

Appropriate balance
between geological
potential and
political risk

Leaning towards greater
geological potential in
higher risk areas

As per GBAR8

On track

On track

On track

On track

SECURING OUR FUTURE

Human
Resources

Pipeline of scarce and
critical skills

60% – successor
cover ratio for top
250 employees

60%

54%

50%

70%

100%

Licence to
operate

Global leader in
sustainable gold mining

Full compliance with all
legal and community
commitments

Full compliance

100%

100%

100%

100%

Ethics and
Corporate
Governance

Full compliance –
SOX and Substantial
compliance to King III

No material/
significant failures

Nil

Nil

Nil

Nil

Nil

1

Including restricted work cases for Australia; 4.66 if work cases are excluded

2

Fatal Injury Frequency Rate

3

Serious Injury Frequency Rate

4

Lost Time Injury Frequency Rate

5

Days Lost Injury Frequency Rate

6

Notional Cash Expenditure

7

Internal Rate of Return

8

Global Business Area Rating system

Group heat map

The top 10 risks and mitigating activities on the website are the same as those reflected in the Annual Report.

The heat map below sets out the top 10 Group risks, as identified through our Enterprise Risk Management (ERM) process. This represents the Group’s top operational and strategic risks, based on our operation- and region-level risk registers as
at the end of 2012.

ERM combined assurance

We formalised a Combined Assurance
approach following the approval of the
Audit Committee in November 2012.

The approach is based on the
application of three levels of assurance
on all our significant risks:

Level 1: Management self-assurance

Level 2: Internal assurance

Level 3: Independent assurance

Combined Assurance aims to:

Provide appropriate levels of
assurance on all significant risks
facing the Company

Demonstrate due diligence
by management

Monitor the relationships between
various assurance providers and
their activities

By adopting this approach, we are
doing everything reasonably practical
to give the Board assurance that we
are executing effective control
measures to avoid and/or mitigate our
risks – thereby ensuring the continuity
and sustainability of all our operations.

The process is monitored by our risk,
internal control and compliance
functions. Recommendations are made
to management for additional
assurance where required or to identify
areas where assurance is duplicated.

The Combined Assurance approach is
formally reviewed every year as part of
our annual risk management plan.

Mitigation strategies for top-10 risks (pre-unbundling)

Risks

Mitigation strategies

•

Reintegration of the cultural transformation and internal safety engagement pillars into the Safe Production
Management Strategy

•

Enhanced safety enforcement measures, including increased resourcing

•

Introduction of a Safety, Health and Environment Committee at South Deep, chaired by the CEO

•

Engineering-out of safety risks, including fall of ground hazards

•

Establishment of a seismic task team and upgrading of secondary support standards

Strong emphasis on responsible security provision and the avoidance of violence

•

Close engagement with mining peers, unions and government to establish a mutually acceptable labour
negotiation framework for the next formal wage negotiation in 2013

•

Increased focus on enhanced, direct communication with our workforce

•

Submission of a new, enhanced ‘second round’ Social and Labour Plan (SLP) for South Deep, including
accelerated distribution of funds from the South Deep Education and Community Trusts with greater involvement
from relevant outside stakeholders

•

Implementation of a comprehensive programme to upgrade accommodation, with a strong focus on the
construction of family units, promotion of home ownership and dismantling of legacy hostel issues

•

Ongoing programmes addressing local procurement, broad-based transformation, training and skill development
and enhanced community development programmes

•

Establishment of grass-roots Sustainable Development Forums and comprehensive stakeholder mapping/analysis in South Africa

Development of a new Community Handbook and community engagement tools by the Sustainable
Development department to ensure consistent, best practice approach across all operations and projects

•

Delivery of shared value through our Socio-Economic Development contributions

•

Minimisation of negative environmental impacts – with a focus on water quality and availability under our new
Water Strategy

•

Review of the Ruggie Framework and other human rights standards to analyse human rights performance at
Gold Fields and ensure best practice

•

More transparent communication with host governments on the state of the industry, cost structures and future
outlook, with a view to fostering a better understanding of the sector’s challenges and competitive
position

Surveys are carried out at all our operations every year by IMIU – International Mining Industry Underwriters and ZURICH Risk Engineering Division. These survey reports carry substantial weight in the insurance markets. All our current insurers rely heavily on these surveys to assist with insurability decisions. The reports also provide executive management and the Board with independent assurance on operational safety and risk management.

Gold Fields is regarded as a good to excellent risk by the insurance market based largely on the physical evidence gathered during IMIU and ZURICH on-site surveys.

Gold Fields hasn’t claimed from the insurance market for over 10 years and we have one of the lowest insurance rates of all mining companies.

SURVEY RESULTS - INTERNATIONAL OPERATIONS

ZURICH CATEGORIES

Tarkwa

Damang

Agnew

St Ives

Cerro Corona

Average

2010

2012

2013

2010

2012

2013

2010

2012

2013

2010

2012

2013

N/A

2012

2013

2010

2012

2013

Fire protection

102

91

84

110

97

70

71

67

48

60

33

35

75

64

74

73

60

Infrastructure Flexibility

95

60

57

98

64

44

100

84

82

100

72

70

94

88

98

75

68

Critical spares

96

74

63

96

54

57

53

66

28

53

33

30

45

31

75

54

42

Spare capacity

91

59

78

91

70

51

94

84

50

69

50

50

45

84

86

65

63

Average

96

71

71

99

71

55

79

75

52

71

47

46

65

67

86

66

58

All the international operations have shown a significant year on year improvement. The average rate reduced from 86 in 2010 down to 58 this year and is fast approaching the excellent category.

St Ives was rated as an excellent risk for the second consecutive year with a rating of 46.

This generally occurs when the fire protection systems are substantially compliant, when there is sufficient infrastructure flexibility in terms of pits, underground mines and critical machinery, when critical machines have the appropriate spares on site and when there is adequate redundancy in critical pump chambers and other relevant areas.

SURVEY RESULTS - SOUTH DEEP

IMIU

2005/6

2007

2008

2009

2010

2012

2013

%RR

REN

%RR

REN

%RR

REN

%RR

REN

%RR

REN

%RR

REN

%RR

REN

South Deep

76

108

77

62

78

42

81

21

81.6

51

82.1

32

IMIU Global average for %RR = 76,3%

IMIU Global average for REN = 49

The IMIU survey principles are the same as ZURICH however they use a different rating system called Min Ram which was developed by them to show the relative attractiveness of the risk (REN). The %RR is a reflection of the quality of fire protection, infrastructure flexibility, critical spares and spare capacity, much the same as ZURICH.

The %RR shows South Deep as being in the top 10% of all mining companies surveyed by IMIU and is a reflection of the new infrastructure, best practice adoption and good housekeeping.

The much improved REN is due to the 100% hoisting redundancy as a result of the commissioning of the Vent shaft and its ability to hoist similar tonnages as the Twin shaft.